1. $ $ $ $ Section 2 The Cash Receipts Journal What You’ll Learn
Chapter 16 $
Section 2 The Cash Receipts Journal
What You’ll Learn
How to record transactions in the cash receipts journal.
How to post from the cash receipts journal to accounts receivable subsidiary ledger accounts.
How to post amounts in the General Credit column of the cash receipts journal to general ledger accounts.
How to post column totals from the cash receipts journal to the general ledger.
How to prepare a schedule of accounts receivable. $ $ $

2. $ $ $ $ Why It’s Important Key Terms Chapter 16 cash receipts journal
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Why It’s Important
Use of the cash receipts journal will save time and reduce errors. $ $
Key Terms
cash receipts journal
schedule of accounts receivable $

3. $ $ $ $ The Cash Receipts Journal Chapter 16
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
The Cash Receipts Journal
A special journal used to record all cash receipt transactions. $ $ $

4. $ $ $ $ Recording Cash from Charge Customers Chapter 16
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Recording Cash from Charge Customers
Business Transaction $
On December 5, On
Your Mark received $212
from Casey Klein to
apply on account,
Receipt 301. $
JOURNAL ENTRY $

5. $ $ $ $ Recording Cash Received on Account, Less a Cash Discount
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Recording Cash Received on Account, Less a Cash Discount
Business Transaction $
On December 12, On
Your Mark received $1,470
from South Branch High
School Athletics in pay-
ment of Sales Slip 51 for
$1,500 less the discount of $30, Receipt 302. $
JOURNAL ENTRY $

6. $ $ $ $ Recording Cash Sales Chapter 16 Business Transaction
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Recording Cash Sales
Business Transaction $
On December 15, On Your
Mark records the cash sales
for the first two weeks of
December, $3,000, and $180
in related sales taxes,
Tape 55. $
JOURNAL ENTRY $

7. $ $ $ $ Posting to the Accounts Receivable Subsidiary Ledger
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Posting to the Accounts Receivable Subsidiary Ledger
Daily postings are made from the Accounts Receivable Credit column to the accounts receivable subsidiary ledger. $ $ $

8. $ $ $ $ Posting the General Credit Column Chapter 16
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Posting the General Credit Column
Daily postings are made from the General Credit column of the cash receipts journal to the appropriate accounts in the general ledger. $ $ $

9. Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Footing, Totaling, Proving, and Ruling the Cash Receipts Journal
To complete the cash receipts journal, follow these steps: $ $
1. Draw a single rule across the six amount columns, just below the last transaction.
2. Foot the columns.
3. Test for the equality of debits and credits. $

10. Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Footing, Totaling, Proving, and Ruling the Cash Receipts Journal (cont'd.) $
4. In the Date column, on the line below the single rule, enter the date the journal is being totaled.
5. On the same line in the Account Name column, enter the word “Totals.”
6. Enter the columns totals, in ink, just below the footings.
7. Double-rule the amount columns. $ $

11. $ $ $ $ Posting Column Totals to the General Ledger Chapter 16
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Posting Column Totals to the General Ledger
There are six amount columns in the cash receipts journal used by On Your Mark. Only five of the column totals, however, are posted to the general ledger.
The total of the General Credit column is not posted. The entries in this column have already been posted, individually, to the general ledger accounts. $ $ $

12. $ $ $ $ Posting Column Totals to the General Ledger (cont'd.)
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Posting Column Totals to the General Ledger (cont'd.) $
The total in each of the other five amount columns is posted to the general ledger account named in the column heading. $ $

13. $ $ $ $ Proving the Accounts Receivable Subsidiary Ledger Chapter 16
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Proving the Accounts Receivable Subsidiary Ledger $
A schedule of accounts receivable is a report listing each charge customer, the balance in the customer’s account, and the total amount due from all customers. $ $

14. $ $ $ $ Proving the Accounts Receivable Subsidiary Ledger (cont'd.)
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Proving the Accounts Receivable Subsidiary Ledger (cont'd.) $ $ $

15. $ $ $ $ Check Your Understanding Chapter 16
Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16 $
Check Your Understanding $
What is included in a schedule of accounts receivable? $ $